SHANGHAI, Mar. 15 (SMM) -- LME tin prices for delivery in three months opened at USD 24,150/mt and closed at USD 23,801/mt overnight, down USD 499/mt from a day earlier, with the highest price at USD 24,258/mt and the lowest price at USD 23,801/mt. Daily trading volumes were 18,892 lots, up 462 lots. Positions were 11,570 lots, down 25 lots.
China's domestic stock market tumbled following Premier Wen Jiabao’s speech on real estate market, dragging down LME tin prices to slip significantly during Wednesday’s Asian trading hours. During the European and US trading hours, LME tin prices continued to extend weak momentum and closed at USD 23,801/mt, down USD 499/mt from a day earlier.
Chinese Premier Wen Jiabao said at press conference at National People’s Congress that domestic home prices are far from reasonable level, so regulation on real estate market shall not be eased. The speech triggered market concern over metal demand from China. In addition, the higher US treasury yields pushed the US dollar higher, weighing on base metal prices. In response, LME base metal prices closed with significant losses overnight.
Premier Wen’s remark on real estate market is regarded as negative signal on metal demand, which will continue to weigh on market sentiment on Thursday. SMM expects that LME tin prices will continue to fluctuate and will test USD 24,000/mt. In China’s domestic market, overnight LME tin price decline will drag down spot tin prices to move in the RMB 172,000-174,000/mt on Thursday.